Financial engineering helps fight cancer and climate change

Academics are reviving the discipline’s tarnished reputation

The rebirth of financial engineering over the past few years has been every bit as striking as the returns once promised by some of the discipline’s more daring adherents.

Not that long ago, it looked like it was game over for the field of study that produced the mortgage backed security, the credit default swap and all manner of other exotic derivatives that exploded so spectacularly in the financial crisis of 2008.

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